Kevin Dowd on free banking

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A couple of days ago, we recommended that readers of this blog should attend the Libertarian Alliance's Chris R. Tame Memorial Lecture, at which Professor Kevin Dowd spoke about 'Lessons from the Financial Crisis: A Libertarian Perspective'. In case you missed it, the video is now available online via the LA's blog. If you haven't got time to watch the whole thing, Samizdata's Jonathan Pearce has an excellent write-up here.

Blog Review 903

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Jay Leno tries to defend the free market by banning it.

Would you trust a government that intervened in contracts: like, say, Sir Fred's pension or the AIG bonuses. And don't you think that losing that trust in the government's being constrained by law and contract poses a greater problem than the pension or the bonuses?

Although having the Congresscritters obsessing over those bonuses does at least stop them causing damage elsewhere.

We have the evidence. Free market school systems really do improve results.

Now this is a surprise. Arts graduates journalists do not understand financial markets.

There really are times when doing nothing is the best idea.

And finally, blaming the teachers.

Blog Review 902

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You can't make sense of the unemployment numbers unless you relate them to the size of the workforce.

An unlikely hero for the taxpayers: Alistair Darling.

Companies failing is not an indictment of capitalism, it's the very essence of it, it's the proof that capitalism is working.

What would happen if drugs were decriminalised? Why not look at a place that has done that and see what did happen?

It's all about the gains from trade and the banking system moves those inter-temporarily. That's why we want a banking system.

A doctor talking about Giffen Goods when discussing alcohol consumption? Maybe the economists are starting to make an impact?

And finally, accountants bless the IRS.

Highly recommended

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The Libertarian Alliance is holding its Chris R. Tame Memorial Lecture tonight at the National Liberal Club in Westminster. It looks set to be an excellent event.

This year’s speaker is Professor Kevin Dowd, a libertarian economist who has written extensively on the banking system and monetary policy. His lecture is titled ‘Lessons from the Financial Crisis: A Libertarian Perspective’.

The event is from 6.30 – 8.30pm, with the speech first and then a drinks reception afterwards. Admission is free. The dress code is lounge suit or smart casual. RSVP to helen@libertarian.co.uk.

Brian Mickelthwait has trailed the lecture in slightly more detail here on Samizdata.

Quote of the week

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It's not an endlessly expanding list of rights – the "right" to education, the "right" to health care, the "right" to food and housing. That's not freedom, that's dependency. Those aren't rights, those are the rations of slavery – hay and a barn for human cattle.

Alexis de Tocqueville P.J. O'Rourke

Blog Review 901

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African undevelopment...the result of colonialism, the slave trade...or could it be that malaria is the major cause?

For those who would run the world financial system. Show how well you do at this game before we take you seriously.

On the AIG bailout and counterparty list. All financial bailouts are counterparty bailouts. More here.

Not all economists back the wider bailout.

What happens when the economic order is not based upon secure property rights.

Atlas Shrugged, the Guardian and Christian Socialism.

And finally, how to tell when your government is too big.

Blog Review 900

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Remittances are thought to be the saviour of many a poor country. But what are they actually spent upon?

Why nationalised banks might not be all that good an idea. For when the politicians decide what gets subsidised, who would be surprised that it is the politicians who get subsidised?

It appears that the GMC operate in a similar manner. Those who run the doctoring side of the NHS get private health care coverage?

Transparency on government spending. Yes, of course we'd like it but that doesn't mean we're going to get it.

We know that Hugo Chavez knows no economics....but would it be too much to ask him to read a history book?

Berkshire Hathaway's lost it's AAA credit rating. Surprisingly, a good thing for shareholders.

And finally, perhaps this is the real problem with the banks?

Blog Review 899

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Interesting spoofing of the censors in China. More here.

When we're talking about inequality we have to define whether we're talking about income inequality or consumption inequality.

We also have to be careful how we define poverty.

For example, those teenage summer jobs buy a great deal more now than they did then.

For all that's being said about him Herbert Hoover most certainly did not cut the Federal budget.

Not everyone is convinced, even now, that crude Keynesianism is the answer.

And finally, what we need right now is a little less fear and a lot more greed.

Blog Review 898

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When someone is given the Nobel for achievements in one are of economics that doesn't instantly make them experts in other areas of economics.

As one other Nobelist puts it, the current problems require a new understanding of the points Adam Smith made.

And the current problems are also laying bare quite how little we know about macroeconomics (as opposed to micro....)

For example, the Goldilocks Theory of Macroeconomic Stimulus.

One way of putting it, we don't have a British banking crisis, we have a Scottish banking crisis. A new Darien perhaps?

Don't try to trim government spending, slash it by simply stopping government from even attempting certain things.

And finally, OK, economists don't know everything about the economy but then that's not uncommon, for a science not to know all the answers.

Blog Review 897

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Equality's a big thing in lefty circles. Pity they don't actually mean it all that often.

And there's also lefty big style rewards at the top while the workers get fired.

If you're going to nationalise the banks then you do need to use a little bit of logic in deciding how and which ones.

To be hoped for of course, but it's very hopeful to think that this government will lead us to smaller government.

And more on this government. There are some things which government simply has to do and they don't do these essential tasks well if they continually try to do things which government doesn't need to do.

(Sweary alert) It seems obvious that this government still hasn't quite grasped the concept of competition as yet.

And finally, St Augustine and the Obamessiah.